The district of Yangpu in Shanghai is currently undergoing significant changes as it transitions from heavy industry to technology-driven businesses. Xue Kan, the Communist Party secretary for Yangpu, recently emphasized the district’s plan to establish a thriving digital ecosystem by attracting smaller tech firms. He underscored the importance of capital, talent, and technology in driving innovation and strengthening the local economy.
In line with Shanghai’s vision of becoming a hub for technological innovation, Yangpu is poised to focus on artificial intelligence and internet technology to cultivate world-class businesses. The district aims to create a “cluster effect” by mobilizing resources and leveraging the digitalization of traditional manufacturing sectors to enhance production and marketing efficiency.
Formerly known as a “rust belt” due to its heavy industries, Yangpu has shifted significantly towards technology-based businesses. It is now home to approximately 7,000 tech firms, accounting for over half of the district’s total sales and significantly contributing to its fiscal income by generating approximately a third of its tax revenue.
To reinforce its position as an innovation hub, Yangpu is strategically targeting both Chinese and international tech firms, as well as attracting talented individuals to contribute to the district’s growing digital economy. Last year, the district announced substantial incentives of up to 15 million yuan (US$2.1 million) to attract promising technology companies to its coastline.
Drawing on its educational resources, Yangpu aims to leverage the expertise of key national universities in the vicinity, such as Fudan and Tongji. Furthermore, with the presence of the Shanghai Technology Exchange, Yangpu provides a conducive environment for technology trading services, offering opportunities for companies to acquire intellectual property rights and laboratory research to facilitate technological advancements in the district.
In addition to targeting local businesses, Yangpu is also keen on attracting foreign direct investment by simplifying its business environment, reducing administrative obstacles, and providing financing support. This initiative aligns with Shanghai’s broader goal of achieving 5% economic growth this year, with Mayor Gong Zheng emphasizing the importance of foreign investment in supporting the city’s economic recovery efforts.
Shanghai’s success in attracting foreign funds is evident from its record-high foreign direct investment of US$24 billion last year, surpassing the previous record. This achievement reflects the growing appeal of the city to foreign investors, further strengthening its position as the commercial and financial capital of mainland China.
In conclusion, Yangpu’s strategic focus on nurturing small tech firms and fostering a vibrant digital ecosystem is an integral part of Shanghai’s broader vision of becoming a global tech innovation hub. With its strong emphasis on innovation, entrepreneurship, and foreign investment, the district is poised to play a pivotal role in driving economic growth and technological advancement in the region.